Posted by AzBlueMeanie:
The Economic Policy Institute is out with a new policy memorandum on the GOP's job creation plan.
The short version:
Republican House Minority Leader John Boehner recently proposed a two-step job creation plan consisting of a full extension of Bush-era tax changes and cuts to domestic spending. His plan calls on Congress to cut non-security related spending back to fiscal year 2008 levels and to enact a two-year freeze on all current tax rates.
Rep. Boehner claims these two policies will drive job growth more than any proposal of President Obama’s. However, we find that this proposal would have a devastating impact on the struggling U.S. labor market while negligibly improving the fiscal outlook.
Specifically, we find:
• Relative to the president’s budget request, the plan would reduce funding for domestic programs—which include investments in infrastructure, education, and research—by 22.7%, while extending the Bush tax cuts for top earners.
• The Boehner plan would reduce the deficit by less than 5.5% in 2011.
• Because reductions in spending are larger than the tax cuts, and because tax cuts for upper-income taxpayers are poor stimulus, the net job impact of the Boehner plan would be an estimated employment reduction of over 1 million jobs.
Read the full report here: http://www.epi.org/page/-/pdf/pm171.pdf